Rey sells Kimberley coal project for $21m
UPDATE 3.25pm: Rey Resources says it has agreed to sell its flagship Duchess Paradise coal project in the Kimberley to Hong Kong's Crystal Yield Investments for $21 million.
Managing director Kevin Wilson said weak coal prices had prompted the company to focus on developing its Canning Basin oil and gas prospects in the Kimberley instead.
"While we also intend to continue the development of our coal exploration assets in the Canning Basin, during this period of sustained lower thermal coal prices, we believe the best interest of shareholders is served by this transaction," he said.
Rey said it expected to book a loss of $480,000 on the transaction.
The deal is subject to Foreign Investment Review Board approval, shareholder approval and due diligence.
Rey shares closed up 0.8 cents, or 15.39 per cent, at six cents.
